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If one were to backtest a bunch of indicators over 5 years of data here is what they would find. I know this because I did it. Every indicator has some degree of lag. This is because the indicator needs two or more samples to return an indication. This is not a problem if markets continue in the...

Certainly there may be an emotion/discipline issue here but there may also be a trading plan issue also. Ask yourself these questions. What is your exit strategy? Does your exit strategy protect you from large losses? Are you following your exit strategy?

80 percent objective and 20 percent subjective. I dont use indicators just price action and rigid entry and exit rules.

I feel your pain but this may be helpful for others, who knows. You grant the options when and how you like. They vest as you and your employees agree upon. Pre IPO or post IPO or both. Assuming there is a market for pre IPO shares they pay there taxes then. As long as the employee has some...

I had go read section 409A. Sect. 409A would apply to deferred income even under todays existing rules. The 20 percent tax penalty applies when the options are granted at discount or the company valuation was considerably off from fair market value. Assuming the new law does not change rule 409A...

Yes your right. And that equity sooner or later converts to income. Whether its options, stock or convertible debt its all the same. Just write the compensation package so that it does not vest until its sellable. Whether you pay taxes on the day it vests or 10 years later does not matter. I...

Good example. Subject to advice from my attorney my quick answer would be this. In writting make the vesting schedule contingent on the company issuing its IPO or alternatively, restructure the compensation (formerly options/RSU s) as convertible debt that becomes equity upon IPO issuance. The...

Ok but wether you can or can not exercise/sell your options is covered by how your employment and articles of incorporation are written. I know of no law that would require stake holders to not sell thier stock after vesting. With the possible exception of startup that raised capital pursuant to...

I did a little research on this and I am still not sure I get it. If a start up compensates key personel with stock options or RSU s that have a vesting period of one year they owe no tax for that year on the options. At one year plus a day the options vest and a tax liability is incurred...

That was also my understanding of vesting.

I do that. Yes a similiar relationship exists there also. The problem is in both cases once parity is reached the trade is basically over. I am a trend trader and lime to stay in for the long haul. I consider what we are discussing to just be a little extra money along the way.

You might be right. It might he reflected in the spread. I have done ok doing something similar. I look at the overnight action on the dollar and play to the inverse relationship between the dollar and crude oil. I thought that perhaps the micro currency contracts might be similiar.

As Ibwas reading your response something occured to me. I wonder if the illiquidity of the micro contracts could in and of itself be a trading opportunity. Please dont try to trade this without more research but here is my thought. If the micro contracts lag behind their parent contract or...

I guess you could do that but now we are talking about some time and effort. For example, if you attempt one contract and the fills are fine you have to now ask more questions. Was it just this time of day or day of the week? Was this acceptable liquidity on this contract or others? If one...

I must agree with Matt on this one. Lack of liquidity would be a real problem for me. I am one of those guys who are always preaching trade only liquid markets.

No reflection on Oanda but I would like to see more traders move over to futures and out of spot forex.

That has not improved with the demise of FXCM in the USA?

There is always the option for americans to trade micro currency futures contracts. I am not sure what the account minimums are to open but that should be easy to find out.

Ya I see your point. I never thought that I would ever hear myself saying this but at my income level I dont need a tax break. I don't want a tax increase either. LOL. This tax plan is probably in for a lot retooling.

I am looking to enter at about the 2nd higher low. Ideally I would be expecting the higher low to form based on looking at the larger TF and determining market bias as bullish. As the second higher low forms you can see the candlestick patterns form imdicating a probable change in direction and...